The Research Network aims the content of this blog primarily at the New York Small Business Development Center (NY SBDC) community on the kinds of things we encounter every day. Views expressed are those of the Research Network staff, and not necessarily those of the New York SBDC or its partners. Comments to an individual post are encouraged. Such comments will be monitored, so please, keep them clean and professional.

Tuesday, January 29, 2013

Raising Money in a Tough Economy

Raising money for any business in this tough economy isn’t easy. More owners are scrambling to attract new capital, and investors are holding tighter to their money, causing a major disconnect. Successful venture capital and private equity funds are only investing in 1 out of every 500 or so deals they see. Banks have cut back lending. Angel investors hammered in the 2008 market meltdown, lost their appetite for new deals while focusing on salvaging existing investments. However, you can raise the funds you need. You won’t get the very best terms and it will take you much longer than you thought. You may even have to retain an outside firm to help; but if it makes sense and you are fundable, you can get the deal done.

Definition of a small business by the US federal government

Definition of a small business in the state of New York

Consolidated Law for the State of New YorkEconomic Development Law § 131§ 131. Definition of a small business. For the purposes of this chapter, a small business shall be deemed to be one which is resident in this state, independently owned and operated, not dominant in its field and employs one hundred or less persons.

World Reference

The NYS SBDC, administered by the State University of New York, is funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA.